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Everything You Need to Know About Solar Panels

As the U.S. solar industry continues to grow at breakneck speeds, you may wonder: Have I waited too long to get in on the action? With residential electricity costs on the rise – 34 percent from 2005 to 2015 – many are curious about the savings solar energy can bring. Whether you're considering a switch to solar for the first time or mulling the decision over once again, there are several things to keep in mind before switching to this green source of renewable energy.

In this guide, we'll provide you all the necessary terminology you need to know to be an informed consumer. We'll also review how solar panels work, what they could cost, and how you could save money through reduced energy costs and tax incentives. It's time to bask in the sun and start thinking about how you can save money living a solar-powered lifestyle.

A (Brief) History of Solar Panels

Solar panels may be hot right now, but they've been heating up for the last 178 years. The technology that allows solar panels to turn energy from the sun into the lights and electricity we use every day (more on that later) was first discovered in 1839 by a French physicist named Antoine-César Becquerel. By experimenting on solar electrodes in an electrolyte solution, he saw voltage develop when light from the sun hit the solution – thus, the first photovoltaic effect was discovered.

Fast-forward a few decades and Charles Fritts created the first real solar cell in 1883 by using selenium (a ​semiconductor) with a thin layer of gold to create junctions. More than 100 years after Antoine-César Becquerel's experiments, American scientists Gerald Pearson, Calvin Fuller, and Daryl Chapin created the first silicon solar cells capable of producing up to a 6 percent energy conversion when met with direct sunlight.

So How Do They Work?

Solar panels are usually used in the same sentence as “clean energy” and “renewable energy,” but how do they really work? Ultimately, these panels create something called a photovoltaic effect – which utilizes photovoltaic cells to capture particles of light and separate electrons from atoms to create a flow of electricity. Most solar panels (which can be large or small) are composed primarily of silicon and use a layer of phosphorus with extra negative electrons to create a charge for the positive electrons being absorbed by the sun. Other elements like metal conductive plates help turn this energy into usable electricity.

By utilizing two types of semiconductors, n-type and p-type silicon, electrons produced by the sun's light are harnessed and turned into a stream of electricity. The p-type semiconductor makes up the bottom part of a solar panel and functions by adding atoms like boron and gallium that act as holes, allowing the electrons absorbed by the top layer to pass through, establishing electricity. The front and back sheets on either side of the panel protect the more sensitive elements of solar panels from moisture and other extreme temperatures.

Once those rays are captured, your solar panels convert direct current (DC) energy into alternating current (AC) energy, which is used at home by sending it through an inverter.

This energy allows “photons, or particles of light, to knock electrons free from atoms, generating a flow of electricity.”

Words You Need to Know

Don't know what some of the words mean when you're talking about the specifics of solar power? Here are the most important terms to know, as suggested by the United States Department of Energy's SunShot Initiative:

Photovoltaic (PV) refers to the conversion of light into energy.

Photovoltaic cells, frequently called solar cells, are the smallest semiconductor element that makes up a photovoltaic module.

Photovoltaic modules are a combination of cells and other components – interconnections and terminals – to generate power from absorbed sunlight.

A photovoltaic array is a system of photovoltaic modules and can be as small as a single module combined into a single support or mount.

Alternating current and direct current, or AC and DC, are two types of electrical currents. A converter can change AC to DC, and vice versa.

An array current is the electrical current produced by the photovoltaic array when sunlight is introduced.

Grid-connected systems are PV systems that provide power back into a residential grid.

A kilowatt, abbreviated as kW, equals 1,000 watts. Most residential power consumption is measured as kilowatt-hours (kWh).

What Are the Different Types of Solar Panels?

There are three main options when looking at solar panels for either your home or business. Here's a brief rundown of what you should know.

Your three options include monocrystalline, polycrystalline, and thin-film – each with its own pros and cons.

Verdict: The most efficient solar panel option

Verdict: The best value for your money

Verdict: The least efficient but most portable

How Much Do Solar Panels Cost?

The answer to how much solar panels cost depends entirely on the system you want to install. While full purchase and installation can cost most homeowners anywhere from $14,000 to over $28,000, here are factors you should keep in mind when considering the cost of solar panels.

The solar panels you want to invest in: Polycrystalline panels tend to be the best value per dollar

The wattage your home needs to run effectively: The cost of solar panels is determined by the wattage they represent, not necessarily their physical size

A DIY installation versus hiring a professional: A hired professional can make sure you have all the right permits for your state or county, in addition to making sure your panels are placed and angled for maximum energy efficiency, but they're also more expensive than doing it yourself

The amount of money you pay per watt: Today, solar panels can cost anywhere from $0.85 per watt to $1.25. If your home only needs 5,000 watts of energy (or 5kW), that would equate to roughly $4,200 to $6,250

Do you want to own or lease your solar panels? For more on that, read our breakdown below.

Ways to Buy

If you're not interested in paying for your solar panels outright, you have two options for leasing them: a Power Purchase Agreement (PPA) or a solar lease. Both involve making monthly payments on the cost of your lease but don't necessarily involve owning them directly. Leasing specifically involves renting your solar equipment and making monthly payments to the company who owns them – much like leasing a car. You agree on the length of the term, and your credit helps determine the monthly cost you pay. With a PPA, however, the company that controls your agreement owns the equipment and sells the energy generated by the solar panels to you at a rate that is usually lower than what you would pay for your electricity. While paying outright for your panels will always make you the most profit in the end, there are other options for creating clean, renewable energy without the high price tag of new panels.

Outfitting Your Home

There are many factors you'll want to consider when outlining a personalized solar solution for your home. The size of the installation relies primarily on the kilowatt-hours, or kWh, you'll need to power your home.

As of 2016, the average U.S. household used just over 900 kWh each month, according to the U.S. Energy Information Administration. It's important to review your energy consumption to determine just how small or large your system will need to be to meet your needs.

The location of your house, the angle of your roof, and the panels you select also play a part in determining the size of the overall installation. It's important to partner with a professional who can appropriately evaluate your roof and make the best possible recommendation for a successful step forward into a solar-powered future.

On average, most homeowners spend between $14,000 and $28,000 to outfit their home with solar power. While that represents a substantial upfront cost, there are different ways to get a solar solution without massive funding, such as a power purchase agreement (PPA) or equipment lease.

With a PPA, the energy company sells you back energy at a fixed or reduced rate, whereas leasing lets you keep the extra energy harvested. Both of these solutions require strong credit scores and may not be available in all areas. A major plus is that you aren't responsible for the maintenance and upkeep of the panels and system.

Tax Rebates

Another part that can play into deciding to move to solar power is tax incentives. Using the Database of State Incentives for Renewables & Efficiency, you can see the specific programs and rebates you may qualify for by installing a solar energy system. They may require that you purchase the system versus leasing or signing a PPA contract.

Though solar energy tax credits were first established in 2005, there's even more good news where these tax credits are concerned. In 2015, the U.S. Congress voted to extend the pre-existing tax credits to Americans who purchased (not leased) solar panels through 2021. Called the Solar Investment Tax Credit, the ITC provides a 30 percent tax credit to consumers and businesses that purchase solar panels for their homes and offices. You can also use this database to search for any additional tax incentives that may be offered by your state or municipality to help drive the cost of solar energy down even further!

The Brightest Possible Future

While relying on the sun for your energy needs may seem scary, advancements in the field and amazing tax incentives make it the perfect time to go green. Since its inception in 2006, the ITC has helped grow the adoption of solar panels across the country by more than 1,600 percent. This credit is not applicable toward the lease of solar panels or a power purchase agreement, however.

As always, certified professionals in your local area can review all of the programs and incentives you may be eligible for if you have a solar array installed.

Which States Are Primed for Solar?

No matter which solar panels you decide to invest in, there's one key ingredient to a quality output that you don't exactly have a lot of control over – the sun. While there's a lot you can do to guarantee your panels are positioned to capture as much of the sun's rays as possible, some states naturally have higher recorded solar output than others. According to the Solar Energy Industries Association, these were the top 10 states for solar productivity in 2016.

California: California generated a combined 18,296MW of solar energy in 2016 – more than six times the amount of energy generated by the next highest state.

North Carolina: With more than 7,000 solar jobs across the state, North Carolina created a cumulative 3,016MW of solar energy in 2016.

New York: With over 8,000 solar jobs in New York, residents were responsible for nearly 1,000MW of clean, renewable energy.

Who Makes the Best Solar Panels?

Deciding which solar panels are the best is contingent on a number of variables including cost, efficiency, and size. Still, there are some top brands and models you should feel comfortable considering when shopping around for the best solar panels for you.

Upkeep

The good news is there isn't much you have to do once your panels are installed, just routine maintenance like cleaning debris around your solar panels (including any leaves or tree branches that may have become lodged underneath them). While you may do this three or four times a year, you also want to consider trimming back any trees that may cast a shadow over your solar panels, blocking the full energy of the sun from striking them.

Once a year, you may also want to consider fully inspecting your panels for any structural damage and cleaning them if necessary. This process isn't overly involved and requires a soft, expandable brush (or a cloth-covered sponge) and soapy water. You may also want a tool to wipe off any excess water at the end. You should consider cleaning your panels early in the morning before the sun rises or in the evening to ensure they aren't too hot to clean. An early morning wash also means the sun will help dry them off throughout the day. While you can hire professionals to maintain your solar panels, caring for them isn't complicated and can be completed at home to save money.

Now that you know more about types of panels and the different ways to pay or lease a solar array, it's time to use Quote.com to receive a custom quote to see how much you could be saving with the sun's rays. Don't wait – start saving as much as 80 percent of your electric bill by making the switch to solar.

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Top Solar Experts

Reveal the Best Solar Panels For Your Home

and Other Solar Tips!

We found the top solar experts and asked them to provide their tips for powering your house with this unlimited, reliable source of energy. With so many factors to consider, we thought you could use some advice on how to get the energy you need at a price you like.

Check out what 78 experts had to say about the best solar panels for your home.

Filter Reviews and Tips By Category

Utilizing a solar system on your roof allows you to generate clean power from the sun that costs less than your current utility company rate. Solar leases allow you to pay monthly, like your normal electric bill, but with a lower rate, so you start seeing savings from day one.

No. These days the media loves to hype emerging technologies, but the truth is we're still using the same solar technology we were back in the 1960's. Since then, solar has become only moderately more efficient (unlike computers or cellphones which experience dramatic improvements in short periods of time). Given this stable technology profile and the 30 percent federal solar tax credit (plus many state incentive programs) solar makes sense right now. Once installed, your panels will continue to work for decades.

Does solar work in cool, cloudy climates?

Yes. Solar panels work just fine in ambient light and will produce significant energy in the fog or on overcast days. In fact, solar panels are actually more efficient at cooler temperatures than hot ones. Although this might seem counter-intuitive, consider that solar panels on a rooftop in cool, foggy San Francisco produce only one percent less electricity than one in nearby Sacramento, where it's sunny and hot. Consider too that Germany leads the world in residential solar right now, and doesn't have a sunny climate.

Can I store the excess energy I generate into batteries?

Yes. Nearly all modern solar panel systems are grid tied which means they're connected to the conventional electricity grid. Your system generates power during the day and excess is fed back into the grid through a system called net metering. When this happens, your meter spins backward and your utility company credits you for that power. At night or on overcast days, you'll use grid power, but you don't generally get charged for it because of all the credit you've generated. This grid tied method tends to be the most convenient for homeowners. Batteries are an option for those who really want them, but they're expensive, bulky, and have to be replaced every five to ten years.

'Do solar panels require maintenance?

Minimal. Solar panels have no moving parts and do not require regular maintenance. Typically the recommendation is to hose off the panels once a year or so, but many panel owners actually never clean the panels and instead rely on the rain to do the job for them. Typically this will cause only a very slight loss in efficiency (about 5 percent) over the lifetime of the panels. Of course, if any large debris falls onto the panels, it's recommended you remove it. These days, solar systems come with monitoring software that allows you to spot any drops in power generation right away. Often your installer is linked into your monitoring system too, so sometimes they'll even be aware of drops in a panel's power output before you are! Pretty slick.

How long before solar will pay for itself?

Depends. Perhaps one of the most unfortunate solar myths is that it's only for rich people and/or environmentalists, when in reality many homeowners choose to go solar simply because it eliminates their big monthly electricity bill. In fact, solar is a very wise choice for people who could actually use the extra couple hundred bucks a month that they're currently paying in power bills. Modern financing options have all but eliminated the barrier to entry for solar (big upfront costs), so many households are now able to go solar for little to no money down. Solar is one of the very few household purchases that will actually pay for itself. Studies show that on average, solar panels return two to four times their cost in saved electricity bills and typically pay for themselves completely within 7 to 15 years. If you live in a state with good incentives, the payback period can be as short as 2 to 4 years.

Will solar panels cause my roof to leak, deteriorate, or collapse?

No. Solar panels actually protect and preserve the portion of the roof they cover, but don't take our word for it. Check out this picture of solar panels that have been through a hurricane. If there's ever a problem with the roof that needs to be repaired, panels can easily be removed. Most solar panels are not attached directly to the roof itself, but rather to a mounted railing system. Installers add sealants to fill in any gaps and often the mounts are surrounded by metal "flashing", or coverings that act as an extra barrier from the elements. Note: if your roof already leaks or needs to be replaced, it makes sense to make roof repairs first before installing solar panels.

How will the solar panels look on my home?

Great! In the last ten years there's been a growing awareness of how smart renewable energy is from both environmental and economic perspective, so solar panels are finally coming into their own and being regarded as an enhancement instead of an eyesore. It's about time! Homeowners' associations that used to be steadfastly against solar have changed their policies and are now going solar in groups. For homeowners who don't like the look of traditional solar panels, there are now many options and styles, including thin-film and non-reflective solar panel roofing shingles. These styles are discreet and lower-profile than the panels of the 1960's. Beauty is in the eye of the beholder (and the buck holder)!

Will solar increase my property taxes?

No. In many other states, solar installations are property-tax exempt. From an investment perspective, this means that installing solar panels could increase the resale value of your house without costing you an extra dime in property taxes. The same cannot be said for other home investments such as swimming pools, a new deck, etc.